The tone Weiss: Tether definitely will cease to exist
Known cryptosuite trader and analyst Tone Weiss predicted the disappearance of the most popular stablon Tether USD. He stated this during a panel discussion with the former head of the Bitcoin Foundation Bruce Fenton on the Honeybadger 2018 Baltic conference in Riga.
“I don’t understand why everyone is so attached to stabilium. In the end, it’s the same dollar that you can send with the help of technologically unstable, centralized database, regardless of the fact that Ethereum does this Omni Layer or server Binance. I believe that Tether will inevitably cease to exist in the future,” said Weiss.
He added that the Tether is a very acute problem for the cryptocurrency community, but few want to openly discuss it. In his view, the success USDT led to the launch of a new tablconv [in particular, from the Circle, Gemini and Paxos].
“If you fall the Tether, the exchange will suffer, and probably will be forced to shift part of the losses on users, so everybody loses,” said a trader.
He also believes that the issue of providing USDT a kind of “double edged sword”. If stablon fully secured dollars, the US government can confiscate them under the pretext of illegal financial activities.
If not, then the holders of the Tether will start to massively sell it at any price (below $1), which will create a substantial inflow of funds into bitcoin.
So, summed up Weiss, Tether threaten regulators and technological problems (bug or attack on the Omni Layer).
Answering the question about the approval of a bitcoin ETF, a trader suggested that the SEC still will take a positive decision within two years. However, what effect this will have on the price of the first cryptocurrency, it is difficult to predict.
“Remember what happened in November and December last year. The price of bitcoin rose from $10 000 to $20 000 only on speculative expectations of launching a bitcoin futures and involving the major players on wall street. What? After the launch there was no volume, the market was dead. Nothing! So the price went down, since it should not have been so quick to reach such high levels. I think a bitcoin ETF may happen the same”, — he stated his opinion.
For example, he led the launch of ETFs based on gold.
“Yes, then the price of gold soared. What we see now? Seven-year bear market from the absolute highs. I wouldn’t call it manipulation, just no one is interested. We are talking about excessive expectations,” he said.
Recall that in February a trader said that in 2018 the price of bitcoin will double, reaching $25 000.